A wildly popular program

Tuesday, Aug. 4, 2009 | 2:05 a.m.

One of the most popular initiatives emanating from Washington lately has been the federally funded cash for clunkers rebate program that gives consumers credit of up to $4,500 for trading their gas guzzlers for more fuel-efficient vehicles.

The program, otherwise known as the Car Allowance Rebate System, has been so wildly popular that the Obama administration, with backing from the National Automobile Dealers Association, has asked Congress for an additional $2 billion to keep it going.

Clunkers in this case are defined as used vehicles less than 25 years old that get no more than 18 miles a gallon. Owners of cars and trucks can become eligible for a rebate if they buy any new domestic or foreign vehicle that meets certain fuel efficiency standards. The new cars, for instance, must get at least 22 miles a gallon.

The idea had been panned by critics who thought it was an inappropriate use of tax dollars and would do little to stimulate the economy. But those critics have been proved wrong in a resounding way.

The $1 billion program passed by Congress and signed into law in June by President Barack Obama has already resulted in sales of 250,000 new cars. The Associated Press reported Monday that Ford Motor’s top sales analyst, George Pipas, said the program helped the company achieve its first monthly sales increase in two years. This is terrific news for the battered automobile industry, which is a key part of the nation’s economy.

The rebate program is also a winner for the environment because the new vehicles average nearly 10 miles a gallon more than the clunkers they replaced.

It’s no wonder the program is almost out of money, far quicker than anticipated even by the administration.

With the House having agreed to approve the additional $2 billion, we believe the Senate should do the same this week before going into recess. Helping the auto industry and the environment at the same time is too good an opportunity to pass up.